Trade secrets in Finland under the Trade Secrets Act

In Finland, trade secrets are not merely an asset, but also a core factor, a driving force for the sustainable development of businesses. Fully aware of this importance, Finnish law has built a strict intellectual property protection system, in which the protection of trade secrets is a top priority. By successfully protecting proprietary information, businesses not only maintain a competitive advantage in the market, but also create a healthy business environment, encouraging other businesses to innovate and grow together. Viet An Law would like to guide customers through the preliminary procedures for registering trade secrets in Finland through the article below.

Definition of trade secrets in Finland under the Trade Secrets Act

According to the Finnish Trade Secrets Act, a trade secret is defined as:

• Information that is not publicly available or easily accessible to people who regularly work with that type of information: This means that the information must be kept private and not publicly available.
• Commercially valuable information through confidentiality: Information must provide economic benefits to the business, such as unique production processes, customer lists, or marketing strategies.
• The information holder must take reasonable measures to maintain confidentiality: This includes measures such as restricting access to information, using confidentiality agreements, and implementing security measures.

Examples of Trade secrets in Finland

In the field of technology:

• Software source code: The code that makes up a proprietary piece of software, such as a video game or a mobile application.
• Algorithm: A sequence of commands or rules designed to solve a specific problem, such as a search algorithm or encryption algorithm.
• Customer Data: Customer’s personal information, purchase history, and other data are collected to analyze and improve the service.

In the field of production:

• Recipe: A unique recipe for creating a product, such as a recipe for beer, wine, or supplements.
• Production Process: Special production process, which makes the product high quality and low cost.
• Product design: Technical drawings, design patterns and information related to product design.

In the field of services:

• Client List: A list of large clients and their contact information, especially in areas such as consulting, finance, and real estate.
• Business strategy: The company’s long-term business strategy, including marketing plans, market expansion plans, and investment plans.
• Information about competitors: Information collected about competitors, such as their products, services, prices, and business strategies.

Other examples:

• Business Plan: The company’s long-term business strategy, including marketing plans, market expansion plans, and investment plans.
• Financial information: Internal financial statements, financial forecasts, and other sensitive financial information.
• Research Results: Results of new product research and development.

Infringements of trade secret protection in Finland under the Trade Secrets Act

In Finland, the protection of trade secrets is clearly stipulated in the law. Infringement of ownership rights to trade secrets is strictly prohibited and can lead to serious legal consequences.

Here are some typical acts that are considered to infringe on trade secrets:

• Disclosure of Confidential Information:
  • Intentionally or unintentionally disclosing confidential information to outsiders without the owner’s permission.
  • Share confidential information with competitors.
  • Disclosure of confidential information in the media or public forums.
• Unauthorized use of confidential information:
  • Use confidential information to create similar products, services, or manufacturing processes.
  • Use confidential information to improve your business performance or cause damage to your competitors.
• Appropriation of confidential information:
  • Stealing, copying, or illegally backing up confidential information.
  • Illegally buying, selling, or exchanging confidential information.
  • Taking advantage of location or relationships to access and appropriate confidential information.
• Breach of confidentiality contract:
  • Violate the terms of the confidentiality agreement, such as disclosing confidential information to others or using this information for personal purposes.
• Other forms of infringement:
  • Unfair competition: Using confidential information to compete unfairly, for example, lowering selling prices to eliminate competitors.
  • Commercial fraud: Using confidential information to deceive customers or business partners.

Trade secret protection in Finland under the Trade Secrets Act

There are many ways to protect your critical business information, some common methods include:

• Confidentiality agreement: When sharing information with others, ask them to sign a confidentiality agreement to ensure that the information is not disclosed.
• Confidentiality clauses in employment contracts: Include confidentiality clauses in employees’ employment contracts so that they understand the company’s responsibility to protect information.
• Data encryption: Encrypt sensitive data to prevent unauthorized access.
• Use passwords: Set strong passwords to protect access to systems and documents that contain sensitive information.
• Physical Protection: Store important documents in a safe or safe place to prevent theft.